NASDAQ Index, SP500, Dow Jones Forecasts – Tech Stocks Propel Wall Street to New Heights

Wall Street Rally Led by Tech Gains

On Thursday, Wall Street experienced a notable rally, with the S&P 500 setting new records and tech stocks leading the charge. The S&P 500 increased by over 1%, reaching an all-time high, while the Dow Jones Industrial Average gained over 200 points, or 0.55%. The Nasdaq Composite outperformed with a 1.4% rise, driven predominantly by technology sector gains.

Sector Highlights and Major Stock Movements

Key sectors driving the S&P 500’s record performance were information technology and communication services. In particular, Intel emerged as a top performer in the Dow with a rise of over 3%. Additionally, the tech sector received a boost from Nvidia, an artificial intelligence leader, whose shares soared by more than 11% throughout the week. Apple also showed signs of recovery, potentially breaking a six-day losing streak.

International and Federal Reserve Influences

Investor optimism was bolstered by the European Central Bank’s (ECB) announcement, which lowered its annual inflation and growth forecasts while keeping key interest rates unchanged. This news was well-received as a positive sign for global inflation trends. Complementing this, Federal Reserve Chair Jerome Powell’s comments to the Senate Banking Committee hinted at potential interest rate cuts later this year, fueling further investor optimism.

Contrasting Stock Performances

Despite the overall positive trend, some companies faced setbacks. Victoria’s Secret saw a substantial 30.4% decline after releasing a weak annual forecast. In contrast, Novo Nordisk’s shares surged nearly 9% on positive trial results for an obesity treatment, highlighting the diverse outcomes within the market.

Anticipation for the U.S. Jobs Report

Investors are now focusing on the upcoming U.S. jobs report, which is expected to shed light on the labor market’s condition in the face of higher interest rates. Recent data on unemployment claims, which remained unchanged last week, indicate a gradual stabilization in the labor market. However, the market’s reaction could quickly shift based on the implications of the jobs report.

Quick Recap

Thursday’s market activity was marked by significant gains in tech stocks and sector-specific advancements, influenced by international monetary policy and Federal Reserve signals. While most sectors and major stocks witnessed growth, individual company performances varied.

S&P 500 Index

The main uptrend was confirmed on Thursday when buyers took out the previous top at 5157.75. The short-term trend will change to down on a move through 5060.00. The major support is the 50-day moving average at 4942.10. It’s also controlling the intermediate direction of the index. The 200-day moving average at 4629.62 is controlling the long-term.

Nasdaq-100 Index

The main trend is up. A trade through 18377.25 will signal a resumption of the uptrend after a 2-day setback earlier in the week. A trade through 17826.00 will change the short-term trend to down.

The intermediate support is the 50-day moving average at 17504.88. The long-term support is the 200-day moving average at 16097.15.

Dow Jones Industrial Average

E-mini Dow futures are higher on Thursday but the market is not performing as strongly as the S&P 500 and the Nasdaq. This is because of its low exposure to technology stocks especially the chip sector.

The Dow is hovering just above the key 50-day moving average at 38389. This moving average has been controlling the direction of the market since November 10 so a failure to hold this indicator could lead to a significant sell-off.

In order for the uptrend to continue, buyers have to take out highs at 39172 and 39343.